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DECISION No

DECISION No.644-TTg OF SEPTEMBER 10, 1996 OF THE PRIME MINISTER TO ESTABLISH THE INVESTMENT FUND FOR URBAN DEVELOPMENT IN HO CHI MINH CITY

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government on September 30, 1992;

With a view to creating conditions for mobilizing all capital resources to invest in the development of the socio-economic infrastructure of Ho Chi Minh City;

At the proposals of the Minister of Finance and the President of the People�s Committee of Ho Chi Minh City,

DECIDES:

Article 1.- To establish the Investment Fund for Urban Development in Ho Chi Minh City to mobilize capital for investment development projects in the socio-economic and technical infrastructure of Ho Chi Minh City.

The Investment Fund for Urban Development in Ho Chi Minh City is a State financial agency which has the legal person status, a registered capital of 500 billion VND at the time of its establishment, its balance account, its seal and the right to open accounts at the State Treasury and Banks in the country. The office of the Fund is located in Ho Chi Minh City.

The Investment Fund for Urban Development in Ho Chi Minh City operates in accordance with the Regulation which is approved by the President of the People�s Committee of Ho Chi Minh City after being accepted by the Minister of Finance.

Article 2.- The capital of the Investment Fund for Urban Development in Ho Chi Minh City:

1. The registered capital: the registered capital at the time of establishment of the Investment Fund for Urban Development in Ho Chi Minh City is sourced from the current revenues of the City as prescribed by law which includes: revenues from sales of houses owned by the State; revenues from the land fund; revenues from surcharges on electricity, water supply, telephone services; part of the balance of the 1996 budget of the City, and the voluntary contributions by organizations and individuals at home and abroad (if any).

Each year, the City will allocate a certain percentage of its budget revenues from lottery for construction, fee on land-use right assignment, revenues from sales of dwelling houses and liquidation of State properties, fees and dues of all sorts and surcharges in accordance with the provisions of law so as to add to the registered capital. The registered capital and the mechanism for making additions to the registered capital are provided for in the Regulation of the Fund.

2. The mobilized capital: the Investment Fund for Urban Development in Ho Chi Minh City is permitted to mobilize medium- and long-term capital from organizations and individuals at home and abroad in accordance with the provisions of law.

Article 3.- The Investment Fund for Urban Development in Ho Chi Minh City makes direct and indirect investments in the development of socio-economic infrastructure and economic development projects in Ho Chi Minh City; provides investment consultancy services and operates in the capital market. The direct and indirect investments made by the Fund shall comply with the principles of financial autonomy with a view to maintaining and developing the capital, self-financing and self management of risks. The interest rates on loans made by the Fund will be set by the City People�s Committee for each type of investment project at the proposal of the Fund Managing Council, but must not exceed the ceiling interest rates on medium- and long-term loans announced by the State Bank.

Article 4.- The Investment Fund for Urban Development in Ho Chi Minh City is entitled to tax reductions and exemptions (capital gain tax, turnover tax and profit tax) as provided for by law.

Article 5.- The management and operation of the Investment Fund for Urban Development in Ho Chi Minh City will be handled by a Fund Managing Council and a professional executive body.

1. The Fund Managing Council is composed of the members who are authorized representatives of the People�s Committee of Ho Chi Minh City, the Financial Service, the Department of Investment and Development, the Planning and Investment Service, the Ho Chi Minh City Branch of the State Bank of Vietnam and a number of other members. The President, Vice Presidents and members of the Fund Managing Council shall be appointed and dismissed by the President of the People�s Committee of Ho Chi Minh City.

The main tasks of the Fund Managing Council consist in:

- Considering and approving the orientations of operation and the plans for capital mobilization, investment and finance, and verifying the financial statements of the Fund;

- Supervising and controlling the executive body of the Fund in its observance of policies and law and its implementation of the resolutions of the Fund Managing Council;

- Submitting to the City People�s Committee for approval, supplement and amendment of the Operation Regulation of the Fund.

2. The Director of the Fund is responsible for conducting the operations of the Investment Fund for Urban Development in Ho Chi Minh City. The Director shall be assisted by a number of Vice Directors and a number of specialized bodies. The Director and Vice Directors of the Fund shall be appointed and dismissed by the President of the People�s Committee of Ho Chi Minh City at the proposals of the President of the Fund Managing Council after securing the approval of the Chairman of the Organizational Commission of the City People�s Committee.

The Director of the Fund is the legal person representative of the Fund and responsible for conducting and managing the operations of the Fund in compliance with its Regulations. The Director is responsible before the Fund Managing Council, the Minister of Finance, the President of the People�s Committee of Ho Chi Minh City and before law for all the operations of the Investment Fund for Urban Development in Ho Chi Minh City.

Article 6.- The President of the People�s Committee of Ho Chi Minh City will approve the Regulations on Organization and Operation of the Investment Fund for Urban Development in Ho Chi Minh City after securing the approval of the Minister of Finance; make organizational arrangement and appoint personnel, and direct the establishment and supervise the operation of the Fund. The Minister of Finance will issue the Regulation for Financial Management and exercise the function of State financial management over the operations of the Fund.

Article 7.- This Decision takes effect from the date of its signing.

The Minister of Finance, the President of the Ho Chi Minh City People�s Committee, the Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, and the President of the Managing Council of the Investment Fund for Urban Development in Ho Chi Minh City, are responsible for the implementation of this Decision.

For the Prime Minister

Deputy Prime Minister

PHAN VAN KHAI